FORTIS REAL ESTATE - Ageas

The
acquisition of
Bernheim
-
Comofi by
Fortis AG

in line with the
real estate
investment
strategy



Jozef De Mey

CEO Fortis AG


Alain Devos

Managing Director


Fortis Real Estate


February 3, 2003

11/19/2013
-

p.
2

Agenda

•
The real estate investments of Fortis


•
The real estate portfolio managed by
Fortis Vastgoed


•
The real estate investments of

Fortis AG :

–
before the acquisition of Bernheim
-
Comofi

–
after the acquisition of Bernheim
-
Comofi

11/19/2013
-

p.
3

The investment portfolio

of Fortis


Asset Allocation


September 30, 2002

Total value : EUR 139.4 billion

REAL ESTATE

5%

SHARES

8%

FIXED INCOME

87%

11/19/2013
-

p.
4


Total value : EUR 6.70 billion

The investment portfolio

of Fortis


Real Estate


Corporate buildings

EUR 2.66 bn

Investment portfolio

EUR 4.04 bn

BANKING

71%

INSURANCE

29%

FORTIS REAL ESTATE

(Belgium)

49%

OTHER COUNTRIES

FORTIS VASTGOED

(Netherlands)

48%

3%

September 30, 2002

11/19/2013
-

p.
5

The real estate portfolio
managed by Fortis Vastgoed



•
Investment portfolio (on balance) :


EUR 1.94 bn

OFFICES

22%

RETAIL

21%

RESIDENTIAL


32%

LAND

23%

PARKINGS

2%

•
Largest private land
owner in the Netherlands
with 25,000 ha

•
7,500 residential buildings

•
Retail concentrated in

AAA locations

•
Corporate buildings (on balance) :


EUR 0.38 bn

•
Third party investments (off balance) :

EUR 0.53 bn

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-

p.
6

•
Alternative long
-
term investment (15
-
20 Y)



Relative short
-
term illiquidity

•
Limited volatility

•
Slight correlation with shares and bonds

•
Index
-
linked incomes

•
Return > yield of OLOs for the same period

•
Limited risk due to asset
-
mix of different types of
property

Why does Fortis AG invest in
Real Estate ?

11/19/2013
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p.
7

Role of Fortis Real Estate in the

Fortis group

Fortis AG

Fortis Bank

Insurance

Fortis Bank

Investment

Portfolio

Corporate

Buildings

Investment

Portfolio

Corporate

Buildings

Investment

Portfolio

Corporate

Buildings

Asset

Management

X

X

X

X

X

Property

Management

X

X

X

Development

X

X

•
Focus on servicing the Fortis Group in
Belgium

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-

p.
8

The real estate portfolio managed

by Fortis Real Estate


Before the acquisition of Bernheim
-
Comofi



Mid 2002

Billion EUR

Investment portfolio

1.01

Corporate buildings

1.22

Management for 3rd parties

Total

2.23

11/19/2013
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p.
9

How does Fortis Real Estate
optimize the return of the real

estate investments managed?

Track record in :


•
Real Estate Asset Management


•
Real Estate Property Management


•
Real Estate Development

11/19/2013
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p.
10

The real estate investments of

Fortis AG before the acquisition

•
Mainly invested in the Brussels office
market ...

OFFICES

67%

RETAIL

32%

RESIDENTIAL

1%

BRUSSELS

87%

WALLONIA

5%

FLANDERS

8%

In % of value

In % of value

Mid 2002

11/19/2013
-

p.
11

•
the 4th major office market in Europe...

0
5
10
15
20
25
30
35
40
45
Paris
London
Berlin
Brussels
Stockholm
Frankfurt
Madrid
Vienna
Milan
Amsterdam
Luxemburg
Siz e of major European office markets (millions of sqm)
Source : DTZ, figures as per Mid
-
2002

The real estate investments of

Fortis AG before the acquisition

11/19/2013
-

p.
12

•
with a rent increase potential...

Source : DTZ, figures as per Mid
-
2002

0
200
400
600
800
1.000
1.200
1.400
London
Paris
Frankfurt
Milan
Stockholm
Madrid
Amsterdam
Vienna
Brussels
Re nta l l e ve l i n m a j or Europe a n offi ce m a rke ts (EUR/sqm )
The real estate investments of

Fortis AG before the acquisition

11/19/2013
-

p.
13

•
still representing interesting yields...

Source : DTZ, figures as per Mid
-
2002

4,00%
4,50%
5,00%
5,50%
6,00%
6,50%
7,00%
Brussels
Stockholm
Amsterdam
London
Milan
Madrid
Paris
Vienna
Frankfurt
P ri m e yi e l d i n m a j or Europe a n offi ce m a rke ts
The real estate investments of

Fortis AG before the acquisition

11/19/2013
-

p.
14

•
and in the past proved to have a relatively
low risk profile with interesting returns

Brussels

0

5

10

15

20

25

0

10

20

30

40

50

1980
-

Qtr 4 2001

Gross returns % pa

Volatility (standard deviation)

Amst

Note: Data as at 31 December 2001 over 21 year period as data permits

Source: Jones Lang LaSalle European Research, January 2002

Barc

Berl

Dub

Duss

Frank

Ham

Lond

Mad

Mil

Mun

Par

Stock

The real estate investments of

Fortis AG before the acquisition

11/19/2013
-

p.
15

•
Within Brussels mainly invested in the
Brussels office sub
-
markets...

Leopold
District
30%
Periphery
2%
City Center
43%
Louise
District
8%
Decentrali-
sed Area
17%
CBD

:
81%

In % of value

The real estate investments of

Fortis AG before the acquisition

11/19/2013
-

p.
16

•
lodging stable tenants :

–
European Institutions

–
Belgian and International Administrations ...

0%
10%
20%
30%
40%
50%
60%
70%
Ci ty Ce nte r
Le opol d
di stri ct
Loui se di stri ct
De ce ntra l i se d
Ea st
De ce ntra l i se d
W e st
P ubl i c se ctor ta ke -up by di stri ct (%)
Ave ra ge a nnua l ta ke -up 1996-2000
Ta ke -up 2000
Ta ke -up 2001
Source : Catella Codemer, the Brussels Office Market, 1st quarter report 2002

CBD

The real estate investments of

Fortis AG before the acquisition

11/19/2013
-

p.
17

•
less influenced by the uncertain
economic climate and representing the
lowest vacancy rates, now...

Source : JLL, figures at end of 3rd quarter 2002

0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
City Center
North District
Leopold
District
Louise
District
Decentralised
Area
Periphery
Brussels +
Periphery
Va ca ncy ra te s Brusse l s offi ce sub-ma rke ts
CBD

The real estate investments of

Fortis AG before the acquisition

11/19/2013
-

p.
18

•
and in the past

0,0 %
2,0 %
4,0 %
6,0 %
8,0 %
1 0,0 %
1 2,0 %
1 4,0 %
1 6,0 %
1 8,0 %
2 0,0 %
2 2,0 %
1 9 9 8
1 9 9 9
2 0 0 0
2 0 0 1
Q1 0 2
Q2 0 2
Q3 0 2
Brussels and periphery

City Center

Léopold District

North District

Louise District

Decentralised Area

Periphery

Source : JLL

Vacancy rates Brussels office sub
-
market 1998
-
Q32002

The real estate investments of

Fortis AG before the acquisition

11/19/2013
-

p.
19

The result of this investment
strategy proved to be excellent

Average

net rental yield :
8,2%


Average

realized return :
10,0%


Figures 2002 : acquisition of Bernheim
-
Comofi excluded


0,00%
2,00%
4,00%
6,00%
8,00%
10,00%
12,00%
14,00%
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
Net r ental yield
Realized Retur n
11/19/2013
-

p.
20

•
Brussels office prime yields are falling

But the real estate investment
environment is changing

6,00 %
6,20 %
6,40 %
6,60 %
6,80 %
7,00 %
7,20 %
7,40 %
7,60 %
7,80 %
1993
1994
1995
1996
1997
1998
1999
2000
2001
MID-2002
P ri m e yi e l ds Brusse l s offi ce m a rke t
Source : DTZ

11/19/2013
-

p.
21

Fortis Real Estate decided to adapt
pro
-
actively its investment strategy

•
Key decisions were based on :

–
Portfolio diversification via :

•
Product diversification

•
Geographical diversification with local management


–
Increase capital gains and returns through
expanding the development business


–
Expanding the fee business by capitalizing
on own track record and a 3rd party track
record in asset management for 3rd
parties

11/19/2013
-

p.
22

Parking

Asset

Management


Property

Management

Development

In which activities does Bernheim
-
Comofi have a track record ?

11/19/2013
-

p.
23

Interparking

•
263 car parks

•
130,255 spaces off
-
street

•
7 countries

•
79 cities

Belgium
36%
France
14%
Austria
2%
Germany
25%
Netherlands
3%
Spain
14%
Italy
6%
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p.
24

1
2
3
Belgium
Interparking
City Parking
Q-Park
Germany
Interparking
APCOA
Q-Park
France
VINCI
Interparking
Austria
APCOA
Interparking
Netherlands
Q-PARK
Interparking
Spain
SABA
Interparking
Ferrovial
Italy
Interparking
SABA
Apcoa
Interparking

Competitors /Rankings


11/19/2013
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p.
25

Bernheim Real Estate

Development

•
Focus on real estate developments
for resale purposes in Belgium


•
Main current developments :

–

Parc de l’Alliance (Braine l’Alleud)

–

Crystal Building (Av Cortenbergh)

–

Botanic Building (North District)

–

Nouvelles Galeries Anspach

11/19/2013
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p.
26

Bernheim Asset Management

•
Focus on asset management for 3rd
parties in Belgium


•
15 certificates and the second largest
Sicafi

–

Main contracts :

•
Befimmo

•
Woluwé Shopping Center + Woluwé extension

•
Westland Shopping Center

•
Chaussée de la Hulpe

•
Kortrijk Ring Shopping Center

•
Place Communale Auderghem

11/19/2013
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p.
27

•
Excellent track record in the Real Estate business


•
Interparking is bringing :

–

product diversification versus office & retail properties

–

geographical diversification (7 countries
-

79 cities
-

263 car


parks
-

130,255 car park spaces)


•
Contribution of the development activities to the
capital gains and higher return of Fortis AG


•
Ranks Fortis Real Estate as market leader in Asset
Management for third parties in Belgium (fee
business)



Bernheim
-
Comofi was the answer

to the adapted investment strategy
of Fortis Real Estate

11/19/2013
-

p.
28





Before the
acquisition

(in % of value)

After the
acquisition

(in % of value)


In one step



The real estate investment portfolio of
Fortis AG



Product diversification


OFFICES

67%

RETAIL

32%

RESIDENTIAL

1%

RESIDENTIAL

1%

RETAIL

17%

OFFICES

40%

PARKINGS

42%

Mid 2002

11/19/2013
-

p.
29


In one step



The real estate investment portfolio of

Fortis AG


Geographical diversification


Before the
acquisition

(in % of value)

After the
acquisition

(in % of value)

BRUSSELS

87%

WALLONIA

5%

FLANDERS

8%

BELGIUM

73%

FRANCE

6%

GERMANY

10%

SPAIN

6%

ITALY

3%

NETHERLANDS

1%

AUSTRIA

1%

Mid 2002

11/19/2013
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p.
30

Billion EUR

After

Investment portfolio

2.00

Corporate buildings

1.22

Management for 3rd parties

Total

4.70

1.48

1.01

1.22

2.23

Before


In one step



The real estate portfolio managed by Fortis
Real Estate



Mid 2002

11/19/2013
-

p.
31

The investment portfolio

of Fortis AG


Asset Allocation


REAL ESTATE

8%

FIXED INCOME

70%

SHARES

22%

SHARES

19%

REAL ESTATE

13%

FIXED INCOME

68%

Before the acquisition

of Bernheim
-
Comofi

After the acquisition of
Bernheim
-
Comofi

June 30, 2002

EUR 13.40 bn


September 30, 2002

EUR 13.79 bn

The
acquisition of
Bernheim
-
Comofi by
Fortis AG

in line with the
real estate
investment
strategy



Jozef De Mey

CEO Fortis AG


Alain Devos

Managing Director


Fortis Real Estate


February 3, 2003